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Moody's downgrade GameStop's debt into junk territory, & more
- Thread starter Arthands
- Start date
The golden calf would likely have a similar thought process about GameStop.I read this as Mooby's
The writings on the wall in the next few years unfortunately, it will be missed but they've been making poor decisions for sometime. Just going into their stores and the way they are setup with games on the walls and the middle completely filled with gaming adjacent merch is hard.
Ehhh... video games yes, but...
Book stores are still gonna exist, (and libraries, obv) as there's no better "try before you buy" than taking a look at the first chapter or so before you buy it. I've been shopping at Barnes and Noble more than I'd think I'd be doing this last year between Criterion sales, graphic novels, and reading through Dune.
Record stores as well. Yes, Spotify/Apple Music/etc/et all exist, but there's a large gap of music that's fallen between the cracks and hasn't been reissued in years, or if they have, haven't gotten the marketing push they need. I've found so many hidden gems in record stores.
Plus let's not forget the value of "putting the thing on your shelf". As games get more intangible, expect to see a vinyl like comeback for physical games, where deluxe packaging reigns supreme.
New consoles aren't going to save Gamestop. There has been such a high turnover rate of CEOs in such a small time span that it's hard for the company to get a clear direction on where it needs to go. Their business model is so archaic for the landscape that they are in. The writing was on the wall over a decade ago when digital distribution started getting a bigger foothold. Anyone in the industry with any business sense can see that physical media will only be a niche market soon.
I doubt that. Not sure when and won't be too long, but won't be entirely gone in a year.
Hmm better waste my trade in credit asap, was going to pre order some games since they are offering a bonus $5 per game but now idk
Some people prefer physical games, also they have a ton of peripherals.
Should I cancel my cyberpunk 2077 limited eduction pre order that they already charged me money for?
OP
OP
Didn't the dude from The Big Short invest a ton into Gamestop? Maybe it'll go way up come new gen season. I'm kinda tempted to get in on that....
That is interesting because I know alot of bookstores, and record stores that closed up. They are no where near the amount they used to be. In the area where I grew up, the local bookstores shuttered, waldenbooks folded, barnes and noble reduced thier store count. And record stores went away for the most part as well, from FYE, Camelot, Sam Goody's. I used to shop at many video stores, record stores and book stores, and as far as I can see. Things aren't looking better for them. For all this idea of tangible items (which I normally would agree with), the closures over the past two decades seem to indicate that a large majority don't seem to care as much.
Not saying they'll bounce back as much, but, this also happened to Sony, so, while it makes for a fun headline, it doesn't mean death is imminent.
Go up to the register and say you want to put $5 down for Doom Eternal and then all games will get the $5 if eligible. Then at the end say you want the rest on a trade card. If they say it needs to be all put towards the preorder, do it and then come back a different day and cancel the preorder for all the credit back.
I work as an analyst for a credit rating company, so let me comment on one thing: getting downgraded doesn't mean they're going to close. Yes, they're not in a good position, but the press releases comments they expect the company to have a good cash flow this year and to even be able to meet the maturity's in 2020. They d
had some savings if Moody's is highlighting their liquidity.
Interesting to note, though, that their debt to ebitda ratio isn't terribly high, I've certainly seen worse.
(One of our local customers is near default and their ratio is waaaaay higher than that, nearly gave my boss ulcers).
Basically it states what we all know in the end - Gamestop's riding on the new console launch to get a cash injection from preorders and buyers. And they need to find a way to keep themselves relevants, because their business model is hopelessly outdated now.
had some savings if Moody's is highlighting their liquidity.
Interesting to note, though, that their debt to ebitda ratio isn't terribly high, I've certainly seen worse.
(One of our local customers is near default and their ratio is waaaaay higher than that, nearly gave my boss ulcers).
Basically it states what we all know in the end - Gamestop's riding on the new console launch to get a cash injection from preorders and buyers. And they need to find a way to keep themselves relevants, because their business model is hopelessly outdated now.
No idea man.
I was going to go in tomorrow and trade in a bunch of games.
I wouldn't be surprised if they close a bunch of eb games in Canada to help gamestop in America stay afloat.
Hopefully not. Would be awful for game preservation and low income consumers.
Thanks for this perspective. Honestly, after hearing about their liquidity and cash flow, it makes me wonder if GameStop would be a decent speculative buy.
(I don't think I would do it, but I could see a scenario where the gamble would work out.)
The GameStop nearest to me in Gainesville does big business, because internet infrastructure is so crap in this entire region. Nintendo Switch also sees a very high physical ratio, which I'm sure is helping GameStop etc. Whereas I buy about 50/50 Physical/Digital for PS4, I try to buy as close to 100% physical for Switch as possible. Resale value is just too good.
I still prefer GameExchange across the street though. Retro games, records, comics, 4K Bluray, DVD, etc.
I still prefer GameExchange across the street though. Retro games, records, comics, 4K Bluray, DVD, etc.
Doesn't GS own too many stores in the US. They need to close the stores they own that are in middle of nowhere, USA first. Secondly, they need to re-invent themselves like BB is doing. Just selling physical videogames ain't an incentive when Amazon, Target, and Walmart sell at better discounts. Maybe partnering up with LRG or Publishers for exclusive CE's might help abit. Honestly Amazon is kicking there ass on buying games. Feel like its a matter of time before they become the next Blockbuster.
100% will close within the next 2-3 years IMO, if not faster. Already happening with other video game stores.
Absurd leasing costs + online stores + digital = bad times ahead
I occasionally find myself wandering into these stores. Quickly confused, I leave empty handed. Cant believe I used to manage one, yuck.
2 days ago I was picking up an exclusive collectible from a store and all 3 employees started hounding me to sign up for the power up program or whatever it's called. Like, I initially said no, I'm not interested - and they kept coming up with questions like "Hey how many games you buy a year?" and "You buy digital" and like dude, I just wanted to pick up my box. Figured they must be doing that bad if they're making employees bother customers that hard. That kind of garbage really makes me not want to ever shop there again.
No, they're just leased locations. Have you ever seen a standalone GameStop?
Is Gamestop making it to the 2020 console launches? I have to admit...despite going all digital, it will be a bummer seeing them go out of business. I do hope they can survive in another form. I like taking my son there to look at gaming toys.
You can do much the same with Kindle, Apple Books, etc.